Norsk Hydro has made its final investment decision to build the Illvatn pumped storage power plant in Luster, Norway, marking its largest hydropower investment in more than 20 years. While the gross project cost is NOK 2.5 billion, Hydro’s net investment after tax is NOK 1.2 billion. This leverages Norway’s hydropower cash flow tax scheme. Construction of the 107 GWh Illvatn pumped storage power plant is scheduled to begin in November 2025, with the plant expected to enter operations by 2030.
Project Factsheet for Illvatn Pumped Storage Hydropower Plant in Norway
Developer/Owner: Norsk Hydro
Location: Luster Municipality in Vestland County, Norway
Hydro’s Net Investment: NOK 1.2 billion
Gross Project Cost: NOK 2.5 billion
Annual Renewable Production: 107 GWh. The power is dedicated primarily to Hydro’s aluminium operations.
Construction Start: November 2025
Operation Start: 2030. Compare 1.3 billion Lewis Ridge pumped storage hydropower project also planned to start operations around the same time.
Design:
- Water pumped from the Fivlemyrane reservoir at an elevation of 1,018 m to Illvatn reservoir at 1,382 m through a new mountain tunnel.
- Reservoir capacity increase by lowering the minimum regulated water level in Illvatn.
- New 13 km transmission line from Fivlemyrane to Sveinsoystolen. Built using 48 aluminium towers.
Utility:
- Supply dispatchable renewable power to support Hydro’s aluminium smelting operations.
- Improve balance in Hydro’s hydropower system. Also reduce summer water loss and boost winter production.
Environmental Target: Hydro reports to aims for net zero loss of prioritized nature during construction and reservoir operations.
Norsk Hydro 2.5 Bn Pumped Storage Project Overview
By channeling Illvatn hydropower plant project’s output to its Norway aluminium operations, Hydro is securing long-term renewable power for a carbon-intensive business. This adds to the push for industrial decarbonization efforts.
The 13 km power line built with aluminium instead of steel is also noteworthy. It speaks of sustainability in generation infrastructure. If completed on schedule, the Illvatn hydropower plant will also play an important role in reducing summer water losses and increasing winter time production. Wholesomely, it can be a model for industrial players seeking zero carbon energy solutions even when not exclusively stabilizing the national grid like the Nore hydropower complex in Buskerud County.
